A UK government pledge to invest £2bn+ in UK automotive strategic manufacturing has been greeted across the sector.
The £4.5bn funding programme will see funding delivered to eight sectors key to economic growth, energy security and levelling-up.
This includes over £2bn earmarked for the automotive industry, supporting the manufacturing, supply chain and development of zero-emission vehicles.
Chancellor Jeremy Hunt said: “Britain is now the eighth largest manufacturer in the world, recently overtaking France. To build on this success, we are targeting funding to support the sectors where the UK is or could be world leading. Our £4.5 billion of funding will leverage many times that from the private sector, and in turn will grow our economy, creating more skilled, higher-paid jobs in new industries that will be built to last.”
Business and Trade Secretary Kemi Badenoch added: “The UK is a global hub for advanced manufacturing, with world-leading automotive, aerospace and maritime sectors. This package builds on recent investment wins, such as the £4bn gigafactory, and the £600m invested to build the next generation of electric Minis, and ensures that the government can continue to help create jobs, grow the economy, and secure the future of great British manufacturing.”
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said the announcement was “an unequivocal vote of confidence in the UK’s critical automotive industry”.
“Coming on the back of almost £20bn committed by the sector in next-generation plants and technologies this year alone, it is indicative of the scale of investment such support can leverage and the result of substantial collaboration between government and the industry.
“This additional government investment reflects the fact the UK automotive sector has the talent, the innovation and the determination necessary to thrive in the face of fierce global competition. It will deliver benefits not just for the automotive sector but for the whole country in terms of growth, high-value jobs and productivity. It also sends a powerful signal that the UK is open for business.”